The number of lender-owned properties are reaching normal levels, according to recent figures issued last week by Fannie and Freddie.
Real estate owned properties or REOs are properties owned by lenders, such as banks, government agencies or government loan insurers.
Freddie Mac reported the number of REOs dropped nearly 33% to 11,418 at the close of fourth quarter 2016. That’s down from 17,004 for fourth quarter 2015.
That’s a drop of 85% for Freddie’s highest number of REOs during the third quarter 2010, when numbers neared 75,000. The fourth quarter 2016 represents the lowest REO tally since at least 2007.
REOs for Fannie Mae dropped 33% to 38,093 for fourth quarter 2016, down from 57,253. This is a 77% drop from third quarter 2010, Fannie’s peak quarter for REOs.
According to the report, loan delinquencies are dropping, however, there are still many properties in varying states of foreclosure, though the number is nearing what is considered “normal” levels.